Pet Care

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Pet Care in China

Aug 2014|Pages: 49

Price: US$2,100

About this Report

EXECUTIVE SUMMARY

Healthy growth momentum for pet care from rising demand

Pet care in China is expected to experience healthy growth momentum in 2014, out of rising demand for pet food and pet products, alongside the steadily growing pet population in China. Continuous trading up from table-scraps and home-cooked food to prepared pet food and growing pet care knowledge are the major drivers of pet care sales, also backed up by increasing household incomes in China, resulting from the steadily growing domestic economy.

Premiumisation trend on the rise

Dry dog and cat food dominates entire pet food sales in China owing to its longer shelf life and convenience in distribution. In dynamic dry dog and cat food in China, the premiumisation trend is more apparent, with more product varieties and more active new launches. Leading industry players have also developed wet dog and cat food by expanding their premium product portfolios. Royal Canin, for instance, introduced Starter Mousse Mother & Babydog, premium wet dog food, in mid-2013.

International players take the leading positions

Due to their longer establishment, high brand awareness and extensive product portfolios, international players took the leadership in pet care in China in the review period, with Royal Canin, Mars Foods (China) and Nestlé (China) taking the top three positions in 2013 in retail value terms. Domestic manufacturers are catching up, but most of them are small local players, taking more advantageous positions in pet products rather than in pet food in the review period.

Pet shops remains the main distribution channel

Pet shops, offering pet food, pet products and other pet care services such as bathing and grooming, have the advantage over other distribution channels, hence assuming a leading role in total value share terms among all distribution channels in pet care in China. In the review period, pet shops’ value share was eroded by other emerging channels, such as pet superstores and internet retailing. The former are large-scale pet shops while the latter provides the most economical and convenient way of purchasing pet food and pet products.

Stronger growth momentum expected over the forecast period

The value CAGR at constant 2014 prices expected in sales of pet care in the forecast period is expected to outperform that seen in the review period, driven mainly by consumers trading up to mid-priced and premium pet food out of rising disposable incomes and growing pet care knowledge. In addition, the fact that leading pet care players’ expanded product lines are able to cater to more consumers’ specific needs for their pets will result in even stronger demand.